DEBT (Tables)

9 Months Ended

Sep. 30, 2017

Summary of total secured notes payable outstanding

The following is a summary of the Operating Partnership's total unsecured notes payable outstanding as of September 30, 2017 and December 31, 2016 (in thousands):



Description of Debt	Principal Balance as of						Stated Interest Rate			Stated Maturity Date
Description of Debt	September 30, 2017			December 31, 2016			as of September 30, 2017			Stated Maturity Date
Term Loan A	$	100,000		$	100,000		Variable		⁽¹⁾	January 9, 2019	⁽²⁾
Senior Guaranteed Notes, Series A	150,000			150,000			4.04	%	⁽³⁾	October 31, 2021
Term Loan B	100,000			100,000			Variable		⁽⁴⁾	March 1, 2023
Term Loan C	50,000			50,000			Variable		⁽⁵⁾	March 1, 2023
Senior Guaranteed Notes, Series F	100,000			—			3.78	%	⁽⁶⁾	July 19, 2024
Senior Guaranteed Notes, Series B	100,000			100,000			4.45	%		February 2, 2025
Senior Guaranteed Notes, Series C	100,000			100,000			4.50	%		April 1, 2025
Senior Guaranteed Notes, Series D	250,000			—			4.29	%	⁽⁷⁾	March 1, 2027
Senior Guaranteed Notes, Series E	100,000			—			4.24	%	⁽⁸⁾	May 23, 2029
	1,050,000			600,000
Debt issuance costs, net of accumulated amortization of $5,473 and $4,317, respectively	(5,066		)	(3,650		)
Total Unsecured Notes Payable	$	1,044,934		$	596,350


(1)	The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan A at approximately 3.08% through its maturity date and extension options, subject to adjustments based on our consolidated leverage ratio.


(2)	The Operating Partnership has an option to extend the term loan up to one time, with such extension for a 12-month period. The foregoing extension option is exercisable by us subject to the satisfaction of certain conditions.


(3)	The Operating Partnership entered into a one-month forward-starting seven-year swap contract on August 19, 2014, which was settled on September 19, 2014 at a gain of approximately $1.6 million. The forward-starting seven-year swap contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.88% per annum.


(4)	The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan B at approximately 3.15% through its maturity date, subject to adjustments based on our consolidated leverage ratio.


(5)	The Operating Partnership has entered into an interest rate swap agreement that is intended to fix the interest rate associated with Term Loan C at approximately 3.14% through its maturity date, subject to adjustments based on our consolidated leverage ratio.


(6)	The Operating Partnership entered into a treasury lock contract on May 31, 2017, which was settled on June 23, 2017 at a loss of approximately $0.5 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.85% per annum.


(7)	The Operating Partnership entered into forward-starting interest rate swap contracts on March 29, 2016 and April 7, 2016, which were settled on January 18, 2017 at a gain of approximately $10.4 million. The forward-starting interest swap rate contracts were deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 3.87% per annum.


(8)	The Operating Partnership entered into a treasury lock contract on April 25, 2017, which was settled on May 11, 2017 at a gain of approximately $0.7 million. The treasury lock contract was deemed to be a highly effective cash flow hedge, accordingly, the effective interest rate is approximately 4.18% per annum.

The following is a summary of our total secured notes payable outstanding as of September 30, 2017 and December 31, 2016 (in thousands):



	Principal Balance as of						Stated Interest Rate		Stated Maturity Date
Description of Debt	September 30, 2017			December 31, 2016			as of September 30, 2017		Stated Maturity Date
Waikiki Beach Walk—Retail ⁽¹⁾⁽²⁾	$	—		$	130,310		5.39	%	July 1, 2017
Solana Beach Corporate Centre III-IV ⁽³⁾⁽⁴⁾	—			35,440			6.39	%	August 1, 2017
Loma Palisades ⁽¹⁾	73,744			73,744			6.09	%	July 1, 2018
One Beach Street ⁽¹⁾	21,900			21,900			3.94	%	April 1, 2019
Torrey Reserve—North Court ⁽³⁾	20,120			20,399			7.22	%	June 1, 2019
Torrey Reserve—VCI, VCII, VCIII ⁽³⁾	6,795			6,884			6.36	%	June 1, 2020
Solana Beach Corporate Centre I-II ⁽³⁾	10,774			10,927			5.91	%	June 1, 2020
Solana Beach Towne Centre ⁽³⁾	35,914			36,424			5.91	%	June 1, 2020
City Center Bellevue ⁽¹⁾	111,000			111,000			3.98	%	November 1, 2022
	280,247			447,028
Unamortized fair value adjustment	—			(1,347		)
Debt issuance costs, net of accumulated amortization of $1,150 and $1,029, respectively	(380		)	(501		)
Total Secured Notes Payable Outstanding	$	279,867		$	445,180


(1)	Interest only.


(2)	Loan repaid in full, without premium or penalty, on March 1, 2017.


(3)	Principal payments based on a 30-year amortization schedule.


(4)	Loan repaid in full, without premium or penalty, on April 3, 2017.